Correlation Between Grieg Seafood and Argen X
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Argen X at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grieg Seafood and Argen X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Argen X, you can compare the effects of market volatilities on Grieg Seafood and Argen X and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Grieg Seafood with a short position of Argen X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Argen X.
Diversification Opportunities for Grieg Seafood and Argen X
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grieg and Argen is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Argen X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argen X and Grieg Seafood is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Grieg Seafood are associated (or correlated) with Argen X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argen X has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Argen X go up and down completely randomly.
Pair Corralation between Grieg Seafood and Argen X
Assuming the 90 days trading horizon Grieg Seafood is expected to generate 2.31 times more return on investment than Argen X. However, Grieg Seafood is 2.31 times more volatile than Argen X. It trades about 0.26 of its potential returns per unit of risk. Argen X is currently generating about 0.18 per unit of risk. If you would invest 6,215 in Grieg Seafood on November 5, 2024 and sell it today you would earn a total of 1,230 from holding Grieg Seafood or generate 19.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grieg Seafood vs. Argen X
Performance |
| Timeline |
| Grieg Seafood |
| Argen X |
Grieg Seafood and Argen X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Argen X
The main advantage of trading using opposite Grieg Seafood and Argen X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Argen X can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Argen X will offset losses from the drop in Argen X's long position.| Grieg Seafood vs. Gamma Communications PLC | Grieg Seafood vs. Charter Communications Cl | Grieg Seafood vs. bet at home AG | Grieg Seafood vs. Ecclesiastical Insurance Office |
| Argen X vs. Made Tech Group | Argen X vs. Logitech International SA | Argen X vs. Pentair PLC | Argen X vs. Check Point Software |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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